Category: innovation | 革新 | 독창성 | 改変

Innovation, alongside disruption are two of the most overused words in business at the moment. Like obscenity, many people have their own idea of what innovation is.

Judy Estrin wrote one of the best books about the subject and describes it in terms of hard and soft innovation.

  • Hard innovation is companies like Intel or Qualcomm at the cutting edge of computer science, materials science and physics
  • Soft innovation would be companies like Facebook or Yahoo!. Companies that might create new software but didn’t really add to the corpus of innovation

Silicon Valley has moved from hard to soft innovation as it moved away from actually making things. Santa Clara country no longer deserves its Silicon Valley appellation any more than it deserved the previous ‘garden of delights’ as the apricot orchards turned into factories, office campus buildings and suburbs. It’s probably no coincidence that that expertise has moved east to Taiwan due to globalisation.

It can also be more process orientated shaking up an industry. Years ago I worked at an agency at the time of writing is now called WE Worldwide. At the time the client base was predominantly in business technology, consumer technology and pharmaceutical clients.

The company was looking to build a dedicated presence in consumer marketing. One of the business executives brings along a new business opportunity. The company made fancy crisps (chips in the American parlance). They did so using a virtual model. Having private label manufacturers make to the snacks to their recipe and specification. This went down badly with one of the agency’s founders saying ‘I don’t see what’s innovative about that’. She’d worked exclusively in the IT space and thought any software widget was an innovation. She couldn’t appreciate how this start-ups approach challenged the likes of P&G or Kraft Foods.

  • The future is divergence

    The future of divergence has been bubbling along for a while. I was chatting to my friend Ian over lunch putting the technological world to right over the hour or so that we had. That coalesced some of the ideas that I have been thinking about for a while and posted about in fragments on this blog at different times and has coalesced in this post: the future is divergence.

    So what about the future is divergence?

    I’d like to think of it as an executive summary for the attention deficit disorder generation who have been brought up on MTV, online instant gratification and the shallow intellectual depths of strategy by PowerPoint presentation.  I guess if I was going for accuracy rather than a snappy headline it would be something like: the future of consumer electronics is likely to be context-dependent divergence rather than the convergence strategies that they have pursued: mostly unsuccessfully.

    Why?

    First of all let’s think about convergence the way it is manifested currently. For the past decade and a half we’ve seen the internet pervade more aspects of everyday life. It is handy to have the same network protocols being used connecting everything together, its what happens when they are connected is what matters.

    If we look at different devices we can see a an evolution of products until one fires the imagination and things kick off. For instance mobile email went through a number of iterations before coming a ubiquitous consumer product. Mobile email started in the mid-1980s with the Ericsson Mobitex network which allowed for two-way paging across a reliable narrowband digital data network. it is still used for breakdown services in the UK and by emergency services in North America. Research In Motion (RIM) made its first BlackBerry handset for the Mobitex network in the late-1990s

    It took another two decades for mobile email to become ubiquitous. I have been using mobile email since 2002, firstly on a Nokia 6600 and currently on an  Apple iPhone. But what has happened is that I have two mobile devices. My phone which is a Samsung feature phone which does my calls and has a week long battery life and my iPhone which handles,  text stuff like email, my calendar and address book. My usage hasn’t converged into one device as the iPhone’s battery life and call quality isn’t good enough.

    Mobile email hasn’t made me give up my desktop email either, I prefer to do long form emails on my laptop at home simply because the writing experience on the iPhone is inferior. Instead of convergence this is an exhibit of divergent devices based on user context.

    I suspect that the phone as a phone factor maybe around for a good while yet; particularly when you look at the utility that people find with Apple’s Siri service or the Vertu concierge service; both of which are often simpler to use than an application or firing up a web browser.

    This divergence of context is one of the reasons why I am skeptical about so-called smart televisions. Our homes are filled with screens that delivers content. The mobile phone is most often used in the home within reach of a wired telephone. Tablets are often used to access the internet whilst watching television. There is a reason why this works currently. I can pick up or put down the internet and have an immersive experience on the television screen; the consumer electronics manufacturers hope that I will soon enjoy this not just in high definition but with 4K (the same standard as many digital cinema set-ups).So why would I want this screen with modules telling me about the latest happenings on Facebook or Twitter a la Pop-up Video? It makes absolutely no sense, yet this is the vision that consumer electronics companies and Google want you to buy into.

    Granted in certain circumstances information presentation of this type can be useful; in particular news television a la CNBC, Bloomberg TV and CNN; but most TVs are more likely to be sold on entertainment and sports.

    The thing was consumer electronics manufacturers like Sony had divergence and frittered it away. The Walkman, Discman, Trinitron televisions, Dream Machine alarm clocks, the ES range of hi-fi separates – all were divergent devices based on user context. Digital didn’t change that, it changed the connectedness of devices and convenience of receiving media. Strategists at the major Japanese electronics manufacturers got blinded by the technology rather than how consumers use products – even Steve Jobs got it wrong on occasion. More on Sony here.

  • CES 2012 trends

    Early January means CES 2012 in the tech calendar as the media gives its full attention to the consumer electronics sector. With some 2,600 exhibitors there was a lot of news coming out of the event. But I was more interested in some of the more macro trends that you could see from the coverage and hear from friends that attended the event. Here’s my three big things:

    Size zero design

    Size zero design – Motorola was responsible for move towards size zero design with its original SLVR and RAZR feature phone designs and Apple has turned it into a must-have design feature across both smartphones and computers. It was only natural that up and coming young Turks like Huawei with their Ascend P1 smartphone should attempt to demonstrate their technical prowess and superiority with the current thinnest phone.
    Huawei-Ascend P1-smartphones
    I also found it interesting that Fast Company wrote an article pointing out the design rabbit hole that size zero design is for device manufacturers and consumers. Pretty good, and only almost two years after this blog (^.^)

    Austerity designs

    Austerity designs – a general observation from a couple of the people I knew had gone to CES 2012 was that manufacturers generally had a lower average ticket price on the items that they were displaying. In the past manufacturers would bring different ranges into different markets, for instance Sony would bring higher end hi-fi products into France and Germany that they wouldn’t bring into the UK. There was less aspirationly priced items than in previous years, probably as manufacturers look to deal with the current economic climate. CES products are not only about drumming sales for the coming year, but also setting the tone for a next few years ahead. This pricing strategy indicates that many of the manufacturers probably aren’t expecting a huge economic bounce back in the West.

    Smart everything

    Smart everything – one of the things that struck me about CES 2012 is the way that technology was been shoehorned into every facet of life  from the car, to the wall thermostat and the wall plug. The only thing is I am not convinced that the electronics will last as long as the useful life of the car or the electro-mechanical Honeywell wall thermostat that would have been used previously. This phenomenon has become its own meme: the internet of (shit) things. Secondly do you really want your home heating or your car dashboard to need rebooting every so often so that it keeps working? I have even heard of the volume disappearing on Sony TVs until they they were updated

  • Innovation starvation + more news

    Innovation starvation

    Innovation Starvation | World Policy Institute – in his article Innovation Starvation author Neal Stephenson talks about the decay of innovation in the west. Innovation starvation is about an inability to get big things done – I worry that our inability to match the achievements of the 1960s space program might be symptomatic of a general failure of our society to get big things done. My parents and grandparents witnessed the creation of the airplane, the automobile, nuclear energy, and the computer to name only a few. Scientists and engineers who came of age during the first half of the 20th century could look forward to building things that would solve age-old problems, transform the landscape, build the economy, and provide jobs for the burgeoning middle class that was the basis for our stable democracy. Innovation starvation has multiple causes from a research mythical man month type problem due to increasing specialisation, lawyers, search engines, pressure groups and activists have a lot to answer for

    Economics

    More Conflict Seen Between Rich and Poor, Survey Finds – NYTimes.com

    Hong Kong

    China denounces ‘Hong Konger’ trend – The Washington Post

    How to

    Use the Ten Second Rule to Cut Impulse Purchases

    Innovation

    New details surface on the UPU: A next-generation CPU architecture | ExtremeTech

    [CES] Sony Develops Self-luminous ‘Crystal LED Display’ — Tech-On!

    Japan

    What’s happening in Japan right now?: Social Games in Japan – interesting that this is part of mobile gaming

    The Myth of Japan’s Failure – NYTimes.com

    Korea

    Samsung Merging Its Bada OS With Intel-Backed Tizen Project – Forbes

    Luxury

    What Luxury Brands Should Learn From Dolce & Gabbana’s Hong Kong PR Disaster – Forbes

    Media

    Microsoft hits pause on web TV service because shows cost too much – SplatF

    TVShack Admin Fights Extradition To U.S. On Movie Piracy Charges | TorrentFreak

    CES: Survey Finds Traditional TV Viewing Is Collapsing – Forbes – this is more about more personal, less social (within the family) media consumption and also consumers are exhausted by TV innovations that don’t matter. I still rock a Sony Trinitron from the late 1990s

    Online

    Snapshot: Viaweb, June 1998 – Paul Graham on what the web used to look like when I first started off in agency life. The site looks curiously mobile friendly!

    Security

    Under voter pressure, members of Congress backpedal (hard) on SOPA

    Cars: The Next Victims of Cyberattacks – IEEE Spectrum – if this doesn’t scare the bejeezus out of you, it should

    Wireless

    Apple Suspends iPhone 4S Sales in Mainland China Stores – NYTimes.com

    CES 2012: Mr. Elop makes bold statements about Nokia in the Windows Phone space | ZDNet – ok what is important here is what Elop isn’t saying. No real reasons around Android and they seem to be having a problem building an on ramp that gets their ecosystem to support them

    Groklaw – Nokia Moves To Quash Barnes & Noble’s Letter of Request the ITC Sent to Finland Re Discovery ~pj – oh dear, sounds like Nokia and Microsoft have been caught looking a bit shady. Even if there is nothing here, it feels like there is which isn’t good from a reputational point-of-view

    Microsoft, Defying Image, Has a Design Gem in Windows Phone – NYTimes.com – this looks like a classic bit of PR-led storytelling – where you give the journalist the bread crumbs that lead him to the story you want to write. The most interesting bit of this is Microsoft  (whom I presume was the client) was willing to throw its other partners such as HTC and Samsung under the reputational bus to big up Nokia. Yet a lot of the hardware issues are due to Microsoft dictating specs to the hardware manufacturers.

  • Product design stalemate?

    Kurt Anderson wrote an essay in Vanity Fair where he argued that product design in everything from fashion to homewares has stood still over the past two decades. It was an interesting that got me thinking about hypothetical reasons why his theory maybe true.
    Why hasn't design changed
    There were a number of possible factors that I came up with:

    Design – product design education has gone global – design professionals now know more about product design than they ever have done before. You now have product designers who can access the same influences from all over the world from the same place. The design computerised tools haven’t changed radically from the early 1990s but they have become more pervasive. Product design and culture are inextricably linked and culture as we previously knew it has been disrupted.

    Culture – The structure of culture has changed. Where the mass-media, publishers like Taschen and (often hard-to-get) style magazines or fanzines were the arbitors of the latest tribe, high and low culture trends, now Google is likely to turn up images and blogs about what whatever you want. This has meant that fashion is no longer linear in its timeline, but massively parallel: from cosplay and rockabilly  to ‘rugged’ style – fashion sensibilities resonates around the world in a self-sustaining loop with more power than previously.

    The pressures on culture have also changed; in the west there is no longer a sense that progress is inevitable. Even up to the 1990s with the Hubble space telescope and the Channel tunnel; big exciting things were being done and aspects of technology were interesting or exciting. You still have this; only its in China, Brazil and India. Environmental concerns and a wider anti-science movement that has gained momentum have squeezed the joy out of progress.

    Societal change – seems on some levels to be going at an ever faster pace, which means that culture values things like authenticity, by looking to simpler times in the near past. Authenticity comes from:

    • Simplicity
    • Heritage
    • Esoterism
    • Quality

    Globalisation – Autenticity can also be seen to be a backlash against the tyranny of choice that globalsiation has provided. Retailers in the west have created giant sheds to handle their massively expanded but similar product lines. This has promoted a homogeneity in many product lines and product design in those product categories. It has also promoted a throwaway culture: H&M clothing for instance – which is at odds with environmental concerns, particularly when you think about what goes into growing cotton. On the plus side it has also created opportunities for mass bespoke manufacture – supporting various subcultures through ecommerce and better logistics.

    Marketing – finally marketing has changed from being intuitative and demand-driven to being much more data and insights driven in nature and this has affected the product development process with every aspect of it undergoing scrutiny. The key challenge is that often people don’t really know that they want, but the space for vision is now lacking.

    You can find more design related content here.

  • Patriot Act + more news

    PATRIOT Act

    PATRIOT Act clouds picture for tech | Politico – the PATRIOT Act passed in the wake of the September 11 attacks, giving the US government access to web services to try and fill in the gaps in intelligence. However the PATRIOT Act covers data held outside the US. So many foreign multinational companies are baulking at using US web services for their businesses. This is particularly important given the move from server and software apps to cloud computing. So the PATRIOT Act is disrupting US businesses from scaling

    Consumer behaviour

    Trendpool » Panasonic’s Female-Only Consumer Trial House

    Students of Virtual Schools Are Lagging in Proficiency – NYTimes.com – interesting that technology isn’t the panacea that people thought it would be in education. Smartboards haven’t been successful given their cost either

    Counterfeit goods losing attraction | SCMP.com – (paywall) Brands stand for quality – like they did in the Victorian era

    Young Women Go Back to School Instead of Work – NYTimes.com

    Economics

    More on What’s Left Over After Paying for Housing – The Atlantic – interesting article on housing and economics. Its less about house prices and more about income net of housing expenses

    Big Developers Dabble in Apartment Market – WSJ.com – decline in home ownership

    Finance

    Ray Dalio’s Richest and Strangest Hedge Fund : The New Yorker

    Innovation

    Single-Atom Wires Could Help Moore’s Law Live On

    Omron smartphone app comes close to instantaneous text translations | The Japan Times Online – like something straight out of a DARPA project

    Domestic robots failed to ride to rescue after No. 1 plant blew | The Japan Times Online – law of unintended consequences and innovation

    Liquid metal capsules used to make self-healing electronics | ExtremeTech

    Roboden: Japanese Company Develops World’s First Elastic Electrical Cable (Video) | TechCrunch

    Japan

    Woodford to sue Olympus, citing lack of investor support to get his job back ‹ Japan Today – not surprising he didn’t get support, first he trashes their shareholder value (probably exasperated by his theatre) then he asks for their help. They won’t care about the truth they’ll care about the 70 per cent drop in the market capitalisation

    Korea

    President Lee Myung-bak talked a lot about controlling high prices. – WSJ – growth and price inflation both considered issues

    Legal

    US Threatened To Blacklist Spain For Not Implementing Site Blocking Law | TorrentFreak

    London

    An Obligatory and Pointless Debate About the Olympics | VICE – but Vice nails it

    Luxury

    NetEase’s Luxury E-Commerce Site First Casualty Of 2012 « Jing Daily – interesting, especially since Netease has a lot of expertise in online businesses. I guess luxury handbags aren’t like World of Warcraft

    Will China’s E-Commerce Market See An Industry Shakeout In 2012? « Jing Daily

    Taking First-Class Coddling Above and Beyond – NYTimes.com… first class represents less than 5 percent of all seats flown on long-haul routes, and business class accounts for 15 percent, those seats combined to generate 40 to 50 percent of airlines’ revenue, according to Peter Morris, the chief economist at Ascend, an aviation consulting firm

    Marketing

    UK marketers anticipate change: Warc.com – Ball & Hoolahan expecting marketing departments to get nuked in amalgamation with other departments

    Media

    Beijing Calling: The Trouble With China’s New English-Language News Network | Fast Company

    Retailing

    UK retailers face “carnage”: Warc.com – partly economics, partly industry structure due to etailing

    Wireless

    Nokia Moving to China from Singapore – WSJ – interesting complex reasons for choosing China or other countries outlined

    Interview with Murtazin – Will Microsoft Buy Nokia’s Smartphone Unit? – Forbes

    Text Messaging Is in Decline in Some Countries – NYTimes.com

    Nokia N9 outsells all other phones in Finland during October – Neowin.net – did Nokia’s move to Windows screw the pooch? Anecdotal evidence that it probably did. Also this code is now called Tinzen being pushed by Intel and Samsung